(a)A capital improvement may be financed
in whole or in part by the issuance of revenue bonds payable solely out
of the net income received from the operation of a capital improvement
and from the tax revenues provided by law that are required by this
chapter to be deposited in the capital improvement bond fund.
(b)If the board desires to finance a capital improvement in whole
or in part as provided in this section, it shall adopt a resolution
authorizing the issuance of revenue bonds. The resolution must state
the date or dates on which the principal of the bonds will mature (not
exceeding forty (40) years from the date of issuance), the maximum
interest rate to be paid, and the other terms upon which the bonds will
be issued.
(c)The board shall submit the resolution to the county exec
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(a) A capital improvement may be financed
in whole or in part by the issuance of revenue bonds payable solely out
of the net income received from the operation of a capital improvement
and from the tax revenues provided by law that are required by this
chapter to be deposited in the capital improvement bond fund.
(b) If the board desires to finance a capital improvement in whole
or in part as provided in this section, it shall adopt a resolution
authorizing the issuance of revenue bonds. The resolution must state
the date or dates on which the principal of the bonds will mature (not
exceeding forty (40) years from the date of issuance), the maximum
interest rate to be paid, and the other terms upon which the bonds will
be issued.
(c) The board shall submit the resolution to the county executive, or,
if the board was created under IC 18-7-18 (before its repeal on
February 24, 1982), to the executive of the second class city, who shall
review it. If the executive approves the resolution, then the board shall
take all actions necessary to issue bonds in accordance with the
resolution. The board may enter into a trust agreement with a trust
company as trustee for the bondholders. An action to contest the
validity of bonds to be issued under this section may not be brought
after the fifteenth day following the receipt of bids for the bonds.
(d) The bonds shall be sold at public sale in accordance with IC 5-1-11. All bonds and interest are exempt from taxation in Indiana to
the extent provided in IC 6-8-5.
(e) When issuing revenue bonds, the board may covenant with the
purchasers of the bonds that any funds in the capital improvement fund
may be used to pay the principal on, or interest of, the bonds that
cannot be paid from money in the capital improvement bond fund.
(f) The revenue bonds may be made redeemable before maturity at
the price or prices and under the terms that are determined by the board
in the authorizing resolution. The board shall determine the form of
bonds, including any interest coupons to be attached, and shall fix the
denomination or denominations of the bonds and the place or places of
payment of the principal and interest, which may be at any bank or trust
company within or outside Indiana. All bonds must have all the
qualities and incidents of negotiable instruments under statute.
Provision may be made for the registration of any of the bonds as to
principal alone or to both principal and interest.
(g) The revenue bonds shall be issued in the board's name and must
recite on the face that the principal of and interest on the bonds is
payable solely from the net income received from the operation of the
capital improvement or from the net income and other funds made
available for this purpose. The bonds shall be executed by the manual
or facsimile signature of the president of the board, and the seal of the
county shall be affixed to them. The seal shall be attested by the
manual or facsimile signature of the county auditor. Any coupons
attached must bear the facsimile signature of the president of the board.
(h) This chapter constitutes full and complete authority for the
issuance of revenue bonds. No law, procedure, proceedings,
publications, notices, consents, approvals, orders, acts, or things by the
board or any other officer, department, agency, or instrumentality of the
state, the county, or any municipality is required to issue any revenue
bonds except as may be prescribed in this chapter.
(i) Revenue bonds issued under this section are legal investments
for private trust funds and the funds of banks, trust companies,
insurance companies, building and loan associations, credit unions,
banks of discount and deposit, savings banks, loan and trust and safe
deposit companies, rural loan and savings associations, guaranty loan
and savings associations, mortgage guaranty companies, small loan
companies, industrial loan and investment companies, and other
financial institutions organized under statute.
As added by Acts 1982, P.L.218, SEC.3. Amended by
P.L.3-1990, SEC.147; P.L.42-1993, SEC.99.